NHP Secured $48.9M To Kick-Start 272-Unit Affordable Redevelopment
A housing project in Ward 8 that has been in the works since 2019 has landed a $48.9M financing package and is set to begin construction.
NHP Foundation is moving forward with the redevelopment of the 272-unit Ridgecrest apartments, the nonprofit developer confirmed to Bisnow, after receiving $16.8M in federal and D.C. Low-Income Housing Tax Credits and $13.9M in tax-exempt bonds from JPMorgan Chase.
That money is being combined with $16.13M from D.C.'s Housing Production Trust Fund, and NHP is pitching in the remaining $2M in interim net operating income and deferred fees for the property.
"This redevelopment, comprised of 140 of 272 units at Ridgecrest, represents an important preservation opportunity for the District at a time when naturally affordable housing is becoming increasingly scarce," NHP Vice President of Acquisitions Tim Pryor said in a statement. "It is also ensuring that renters can live there affordably for years to come."
NHP first acquired the 1950s-era Ridgecrest Village Apartments in February 2019 from an affiliate of WC Smith, according to property records, after tenants organized through the Tenant Opportunity to Purchase Act process.
The deal reached between NHP and the Ridgecrest Tenant Association ensured that the tenants retained a minority ownership stake in the building, while NHP agreed to keep the property affordable to those making between 30% and 80% of area median income.
The nonprofit plans to begin construction on the first phase of its redevelopment in early October, which will entail redeveloping six buildings on the southern half of the property, two at a time. Residents in the under-construction buildings will be temporarily relocated, but all are expected to return once renovations are completed.
Upgrades include an updated HVAC system with new central air, updated bathrooms and kitchens, a new community and laundry room and other behind-the-scenes work to make building systems more modern and efficient.
The first phase of construction, which covers 140 units, is expected to take 18 months.
NHP has also received HPTF funds for the second phase of the property's redevelopment and is expecting additional design, permitting and District underwriting to finalize over the next year. The provider hopes to begin construction on the second phase next fall.